Cost Management

What is Cost Management in Accounting?

• Cost management in accounting is a form of

management accounting that is designed to
help business owners predict how much
business expenses. The purpose of this form
of accounting is to avoid going over budget
so that businesses can hold onto as much of
their revenues as possible. 
What is Cost Management in
Accounting?
• The purpose of this form of accounting is to
avoid going over budget so that businesses
can hold onto as much of their revenues as
possible.
What is Involved in Cost Accounting?
• Cost accounting will help businesses
determine the costs of products, projects,
processes to ensure that financial reports
and statements are as accurate as possible. It
also helps executives and authorized
members of management make the most
informed decisions when they are financial
planning or deciding on the best long-term
moves for the organization.
What is Involved in Cost Accounting?
• To see the big picture, the accounting
professionals will record the cost of inventory,
manufacturing, goods sold, and overhead
operations. After this is reported, the expert in
cost accounting and management will then
analyze the cost behavior so that they are able to
see the cost-volume-profit relationships and how
it relates to the existing budget, according to 
Accounting Coach.
Examples of Cost Management
Examples of Cost Management
Examples of Cost Management
Examples of Cost Management
How Does Cost Accounting Help
Businesses Thrive?
Cost accounting was originally created to help
manufacturing businesses assess the cost to
manufacture products, store them, ship them, and
stay profitable. While it was first involved in the
manufacturing sector, it now has become an integral
part of budget planning within the service industry.
The main reason why this approach to accounting
helps businesses thrive is because it shows the
company where it is earning and losing money.